The Dutch economy reported 0.1% growth in the first quarter of 2025, compared to the previous quarter, preliminary data from Statistics Netherlands (CBS) showed.
Economic growth has declined over the past four quarters, however the slight uplift in Q1 was driven by a smaller reduction in inventories and an increase in public consumption.
Public spending
Public spending grew by 0.5% in the quarter, largely due to increased spending on healthcare, however household consumption fell by 0.2%, as spending decreased on food, beverages and transport, among other things.
Investment in fixed assets fell by 2.2% in the quarter, with particular declines noted in passenger cars and vans.
‘This decrease coincided with the introduction of tax changes on 1 January 2025 and changes to rules on environmental zones in a number of cities in the Netherlands,’ Statistics Netherlands noted, adding that spend on cars and vans had risen ‘significantly’ in the final months of 2024.
Exports of goods and services declined by 0.8% in the quarter, particularly in industrial products, which led to a reduction in the trade surplus.
Sectoral performance varied, with the energy sector seeing the largest increase in value added in the quarter, at 5.8%, while the public sector also contributed significantly. However, value added declined in industries such as mining (which reported a 15% drop), agriculture and fisheries, business services, and manufacturing.
Year-on-year growth
On a year-on-year basis, the GDP of the Netherlands grew by 2.0% in the first quarter of 2025, with public consumption (up 2.8%) and household consumption (up 0.6%) among the major contributors.
Investments were 1.5% higher in the first quarter, year-on-year, with exports rising 0.9% and imports growing by a more subdued 0.6%.
‘Among the sectors, manufacturing and the public sector made the largest contributions to economic growth compared to the first quarter of 2024,’ Statistics Netherlands noted. Read more here.
